States Propose Taxes on E-Cigarettes

With the use of e-cigarettes on the rise, a growing number of states are considering taxing them.


Photo by John Williams / CC BY 2.0

According to the National Conference of State Legislatures (NCSL), Minnesota and North Carolina are the only states to date that have imposed taxes on e-cigarettes.  In Minnesota, the tax is 95% of the wholesale price.  In North Carolina, the tax is $0.05 per milliliter.


As the NCSL table below shows, at least 15 other states considered such taxes in recent legislative sessions, but did not enact them.  Proposals are pending in six other states.

Up in Vapor
Passed
Minnesota	Increased from 75% to 95% wholesale
North Carolina	5 cents per 1.0 ml.
Pending
Michigan	15 cents per 1.5 ml
New Jersey	75% wholesale
Ohio	49% wholesale
Defeated
Delaware	30% wholesale
Hawaii	85% wholesale
Indiana	24% wholesale
Kentucky	1. 15% on inventory 2. 20% wholesale
Maine	Cigarette equivalency tax
Massachusetts	90% wholesale
New York	75% wholesale
Oklahoma	5 cents per 1.5 ml.
Oregon	81% wholesale
Rhode Island	80% wholesale
South Carolina	5 cents per 1.0 ml.
Utah	86% wholesale
Vermont	92% wholesale
Washington	95% wholesale
Wisconsin	84% wholesale
Pre-filed for 2015
Nevada
New Mexico
Virginia

Sources: NCSL and the American Vaping Association, December 2014